Free Consultation

Proposal after time off from work


I left my job last year and took a year off to go back to school. I used my credit cards to pay my living expenses/tuition costs. My debt increased from about $40,000 to about $55,000 over this period. I had expected to receive a lump-sum amount from my parents who have just sold their house. I expected to receive this amount (about $25k) when I chose to take time off work last year. I just found out yesterday that they won`t be able to give me any money.

Since my debt increased because I left work of my own free will, do you think my creditors will consider this fraud? I would like to make a consumer proposal for at least 50% of my debt.

What happens if they do consider it fraud? (I owed one creditor nothing last year, and now owe them $9000.) Are they likely to consider the $4500 they would receive under the proposal as satisfactory given these circumstances? If not, are they likely to charge me with fraud?


One Response to “Proposal after time off from work”

A licensed trustee said...

It is difficul to say what your creditors might think – they only way to know will be to file the proposal and see.

Based solely on your comments, it appears that you think someone might consider what you’ve done fraudulent – I agree, that’s possible. Your worst case scenario if you offer a proposal may be that your creditors counter offer and ask you to repay a greater portion (perhaps all) of your debts.

I think you should use the links on this page to find a trustee in your area and go and have a chat with them about your situation.